I made a promise to my friends years ago to tell them when I saw Financial Armageddon coming. Consider yourself warned.

The Bundestag (German Parliament) will probably vote against Chancellor Angela Merkel’s Bailout for the banks which have been sold falsely as bailing out Greece, Italy, Spain, Portugal and Ireland. This has been announced by Ambrose Evans-Pritchard who is one of the most widely read columnists (by billionaires) in the world. Anything he says will instantly travel around the globe.

As soon as the Germans get back from their August vacations, the Bundestag will vote on the policies of Angela Merkel which are really the policies of the European banks led by the Rothschilds. She grew up in East Germany. Her father was a Lutheran pastor but had so many privileges granted to him by the officially atheistic Communist government that we can only conclude he set an example of betrayal to his daughter at an early age.

One of the people leading the campaign against her policies is her mentor former Chancellor Helmut Kohl. She also faces stiff opposition from her coalition partners the Free Democrats a far Right party. The Free Democrats have 93 seats in the 622 member Bundestag. Merkel only has 239 party members in the 622 seat Parliament so the vote looks good for Germany and bad for the bankers.

As I explained previously in Hugo Chavez, Gold Runs, Bank Runs and Bank Holidays that each euro note is clearly marked to reveal the nation that printed it. This means that when, not if, the Italians, Greeks, Portuguese and Spaniards drop out of the euro, their people will be given lira, drachma, escudos and pesetas and their purchasing power will be cut 50% overnight. As I said, the Europeans are on vacation until next weekend. At that time, the average man in the street will realize his time is short and everyone will be trying to get out of euros. Europe will be a political and financial bedlam in September.

After the euro collapses, there might be a call for an international conference to reset the values of all currencies and give up as much national sovereignty to the IMF as possible. The dollar will be cut 50% in value and Americans will get their budget dictated to them from the IMF. This conference will be held when the bankers think the time is right.

A few update news items: Ben Bernanke said he wanted Zero Interest Rates for two more years. Translation: He wanted the banks to be able through low interest rates to make the trillions of dollars in bad assets they still have on the books to appear small. Zero Interest Rates also allow his friends like Blythe Masters at JP Morgan to borrow money by the hundreds of billions, invest in commodity futures and make you buy it back at higher prices. 39% higher this year than last.

This item just in: European banks borrowed zero euros from the European Central Bank (ECB) overnight but their deposits soar by 17.2 billion euros since yesterday. Only 3 sources for this much cash: the Rothschilds, the drug cartels who did help out in 2008 and Ben Bernanke’s printing press. Gold and silver were down today. I think they want to discourage investors in Europe from fleeing out of the euro. If I were a European, I would regard the Fed’s manipulation of bullion prices as a gift and flee out of Italian. Spanish and Greek euros.

The problem with all these Bailouts is that they are not cancelling debts. In fact they are increasing the amount of unpayable debts by tens of trillions of dollars.

When Hugo Chavez demanded his 211 tons of gold back, he also shifted his money from US and English banks to Russia and China. I assume he does not want to join Gaddafi in Zimbabwe.

JP Morgan owes Mr Chavez 10 tons of gold. They just got less than a third of a ton of gold from HSBC. To date he has not received any gold. This has spooked the markets. The US and UK governments lease gold as I have said before. They give a certificate to a bank like JP Morgan which sells that certificate five times which appears on the balance sheets of six banks as gold bullion but it isn’t gold. It is paper. This is all well and good until someone like Chavez asks for his gold deposit back.

The important point is that as Jeff Christian said in testimony before the CFTC there is between 50 and 100 ounces of paper for every ounce of physical bullion. That is called leverage and is wonderful on the way up. But deleveraging is a killer on the way down. When Chavez demanded his 211 tons of gold bullion, he forced the bankers to deleverage out of thousands of tons of paper gold.

Silver News Update.

I am more bullish on silver than gold. There is more gold out there to be bought. Silver is a much smaller market. Silver and gold are being subject to market manipulation which cots the Federal Reserve hundreds of billions of dollars to cover. When silver breaks through 53 dollars an ounce the manipulation will die as the FED has to pay JP Morgan, HSBC, Morgan Stanley and Goldman Sachs to cover their short positions. At that point, silver should have no resistance and skyrocket to 75 or 85 dollars an ounce. The manipulation of the physical silver market by the sale of paper silver will be stopped dead cold by investors demanding delivery of their silver and gold.

Personally, I think silver will take off by November and possibly sooner.

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About horse237

I have decided to share two of the visions I had as a child. When I was eight, I had a vision of a future war that killed 99.5% of the world's population. When I was 16 and living in the projects, I had a vision of my future. I was to live in complete obscurity until it came time to stop WW III. When I was about ten, I had read a bio of Nikita Khrushchev which said he survived Stalin by playing the bumbling fool an old Russian peasant trick. I decided to do the same as I had already learned that we did not live in a democracy. The other vision I had when I was in third grade was of the Mind of God and how it interacted in the creation of the world we see. I believe you and I were born at this time precisely so we would have an opportunity to stop this war. As for my personal info, I grew up on military bases and in housing projects. My legs atrophied from starvation as a child. My second step-father died in prison. I used to have to rub my skin to simulate human contact. They did not feed me when I was a child. I do not fight in their wars as an adult.

I saw one poll that said 15% of the German people support the Bailouts. The first rule of all politicians is to save yourself. Their only real program is for their own re-election. They will dump Frau Merkel’s policies if not her at the first opportunity. My first response to that 15% response favorable figure is that is the number of people one standard deviation or more below normal intelligence. They will bankrupt themselves and lose their credit rating at this rate. Look at today’s essay China Declared War. The bankers are losing on all fronts. The next front will be military. I predict a loss there as well.

@John
I totally agree! If anything, Kohl’s “opposition” is only to fool the people, making them believe someone is looking out for them.

@horse237
“When Hugo Chavez demanded his 211 tons of gold back, he also shifted his money from US and English banks to Russia and China. I assume he does not want to join Gaddafi in Zimbabwe.”

And does Hugo think Russia and China are any different? Are their Central Banks not part of the BIS? Does he not know, despite what their public stance on Gaddafi/Libya is, they are covertly supporting NATO’s rape in Libya? See e.g. this Russia Times article:
Russian energy interests cast eye over Tripoli finale for Libya regimehttp://rt.com/business/news/lybia-russia-oil-contracts-123-955/

With Russian energy majors heavily invested in Libya, Business RT spoke with Aleksandr Nazarov from Gazprombank about the implications of the ousting of the Gaddafi regime, stemming from Russia holding back from overt rebel support.

Russian oil companies may not be allowed to resume their oil operations in Libya, should rebels and NATO oust the Gaddafi regime, Reuters reported, referring to Aram Shegunts, the head of Russia – Libya business Council.

“We completely lost Libya. We won’t be given the green light, and if somebody thinks in a different way, that’s a deception.”

Rebels in Libya, who’ve taken almost the whole country under their control, accuse Russia of not allowing them enough support, with Abdeljalil Mayouf, a manager for information at the oil company of Libya’s rebels, saying the country could disrupt some of the oil contracts with Russia.

“We have no problems with companies in Western states, such as Italy, France and Great Britain. But we could have some political disputable issues with Russia, China and Brazil.”

Among Russian oil companies that have already suffered are Zarubezhneft and Gazpromneft which haven’t managed to complete the acquisition of a 50% stake from Italy’s Eni ina consortium that develops Libya’s Elephant oilfield, in a $178 million transaction.

This is open admission Russia is “covertly” supporting the rebels. I am certain China too is “looking after it’sinterests”, doing the same).

One more thing I want to point out is the last para which again hints that “We completely lost Libya” is a deception in itself. It is clear from this “Zarubezhneft and Gazpromneft” DO own a huge stake in “Italy’s Eni ina consortium that develops Libya’s Elephant oilfield” (so what if it is less than 50% right now) and if “Italy, France and Great Britain” are the darlings of the rebels, then Russia too benefits. Not “overtly”, of course ;-)

I am not a qualified investment adviser to get real advice that fits you and your needs.

Italian banks are experiencing bank runs. They suffer from the same bad assets held by their banks that have never been cancelled. The Italians, the Spanish, the Greeks, the Portuguese and the Irish will have to drop out of the euro. Everyone in those countries should get out of euros. If I were there, I would be getting onto silver. I would advise them as well as Americans to first buy food and rotate your stock so it does not spoil.
Europeans have to pay a VAT up to 22% on the purchase of gold and silver. There is an alternative. The man doing the interview is the video in today’s essay China is James Turk. He is the founder of http://www.GoldMoney.com . He has allocated gold and silver accounts in Switzerland and other locations. I would only put my money in allocated gold and silver in Switzerland.

I do not know the European tax situation. I would assume you will be saved from VAT. You need to consult a European financial and tax consultant before making any decisions. Do not wait for January of 2012 for tax reasons.

Let me repeat. I am not a financial expert. But I do read and understand what I read.
The current rate of inflation is 12% assuming you do not believe the government lies. That rate will soon go to 15% and then 25% so you need to protect your assets against inflation. Inflation will cut your purchasing power even if there is no international conference to devalue currencies.

Dr Michael Hudson has joined a Harvard anthropological study of Babylonian economic. The Babylonians knew thousands of years BC when to cancel debts. They developed a formula that told them when their debts need to be cancelled. So why have they not cancelled our debts? Because they want to steal every last pound before they completely ruin your country.

Just protect your purchasing power. If there is a Plaza Accord II Conference the dollar will be cut worse than the pound though your North Sea oil is depleting rather quickly. And that will hurt your balance of trade and the value of your pound.